The Latin Americas is known to be a hotspot for mining companies since it is known to be a great source of a variety of metals and minerals. But as mining jurisdictions in countries like Chile, Peru, and others become more complicated, Ecuador is going on a different route and is rather shifting to a heavy mining-friendly stance. The newly-elected president, Guillermo Lasso (succeeding Lenin Moreno), has a positive stance towards mining and campaigns to promote foreign investments in the mining and oil sectors, while cutting tariffs on agricultural and other heavy equipment.
According to an article by Merlin Marr-Johnson, Executive Vice President at Salazar Resources Ltd., “Mining is the only Ecuadorian industry that offers growth potential as agriculture, tourism and the oil industry are ex-growth with structural problems, and the mining industry is keen to invest heavily and generate future earnings.” This is obviously acknowledged by a number of companies by engaging in drilling and exploration projects in the country. Here are some:
Lundin Gold (LUG.TO)
They are mainly focused on the Fruta Del Norte gold mine in the country, inaugurating it in November 2019. The company purchased the Fruta del Norte gold deposit in late 2014 and now has 100% ownership of it, 8 years after it was discovered. It is situated within a 150 km long copper–gold metallogenic sub-province located in the Cordillera del Cóndor region in south eastern Ecuador. Its first gold production was reached in November 2019 and commercial production was achieved in February 2020.
There was a slight slowdown in production in 2020, but they recently announced the production of 108,799 ounces of gold produced in the second quarter of this year.
Solaris Resources (SLS.TO)
The flagship project in Ecuador, which is the Warintza project, is focused on the Warintza Central resource, which covers ~700m of a 5km x 5km cluster of copper porphyries. The area hosts a high-grade open pit resource within a 5km trend of outcropping copper porphyry mineralization, with a number of untested, large-scale gold-in-soil and geophysical anomalies. It is adjacent to the +1Bt San Carlos-Panantza copper deposits and is the same belt as the Fruta del Norte and Mirador mines. Drilling the area already commenced and recently reported high-grade intercepts in the area.
Their shares recently rose from $1.47 to $13.24, since the company released more assays from its flagship Warintza copper-gold project in southeastern Ecuador, about 85 km east of the city of Cuenca.
Ecuador is going to be an excellent hotspot for mining companies because of its resources. But it will definitely benefit the country as well. There will be more jobs for the people because of the establishment of mining clusters, and will definitely bring more life to the economy and promote technological innovation.
Submitted July 20, 2021 at 09:08AM by morsingguirlandea1 https://ift.tt/3eAmCEm
